Processed nuts to attract excise duty
The Supreme Court on Thursday ruled that packaging of processed cashew nuts, peanuts, almonds etc in the form of dry roasting, oil roasting, salting would attract excise duty.
By Sanjay K Singh, TNN |
NEW DELHI: The Supreme Court on Thursday ruled that packaging of processed cashew nuts, peanuts, almonds etc in the form of dry roasting, oil roasting, salting would attract excise duty.
The sale of such products by the companies without registering with the authorities would also invite imposition of penalty, said the apex court.
A bench of Justice Ashok Bhan and Justice Dalveer Bhandari set aside an order of the Customs, Excise & Gold (Control) Appellate Tribunal, Mumbai (now called the Customs, Excise and Service Tax Appellate Tribunal) which had held such goods were not assessable to duty. The court restored an order of the authorities imposing duty on such products and penalty on the defaulting assessees. The court said it is crystal clear that such products have to be classified under Chapter 20 of the Central Excise Tariff Act. It deals with dutiable products.
Relying on its earlier decisions, the court said certain processes which may not otherwise amount to manufacture have been deemed to be manufacture by Parliament under section 2(f)(ii) of the Central Excise Act.
The verdict came on a bunch of similar appeals. In one such case, M/s Phil Corporation Ltd, the assessee manufactures processed cashew nuts, peanuts, almonds etc by dry roasting, oil roasting, salting, seasoning and packs them in different containers and clears these items under its brand name, did not register with the Central Excise Authorities and cleared these goods without payment of excise duty.
The Commissioner of Customs & Central Excise on October 31, 2000 had held that such goods were chargeable to duty and confirmed the demand and penalty of the authorities. The assessee appealed to the tribunal subsequently.
The sale of such products by the companies without registering with the authorities would also invite imposition of penalty, said the apex court.
A bench of Justice Ashok Bhan and Justice Dalveer Bhandari set aside an order of the Customs, Excise & Gold (Control) Appellate Tribunal, Mumbai (now called the Customs, Excise and Service Tax Appellate Tribunal) which had held such goods were not assessable to duty. The court restored an order of the authorities imposing duty on such products and penalty on the defaulting assessees. The court said it is crystal clear that such products have to be classified under Chapter 20 of the Central Excise Tariff Act. It deals with dutiable products.
Relying on its earlier decisions, the court said certain processes which may not otherwise amount to manufacture have been deemed to be manufacture by Parliament under section 2(f)(ii) of the Central Excise Act.
The verdict came on a bunch of similar appeals. In one such case, M/s Phil Corporation Ltd, the assessee manufactures processed cashew nuts, peanuts, almonds etc by dry roasting, oil roasting, salting, seasoning and packs them in different containers and clears these items under its brand name, did not register with the Central Excise Authorities and cleared these goods without payment of excise duty.
The Commissioner of Customs & Central Excise on October 31, 2000 had held that such goods were chargeable to duty and confirmed the demand and penalty of the authorities. The assessee appealed to the tribunal subsequently.
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